Software services exporter HCL Technologies on Tuesday said it has put on hold its acquisition plans as the global economic situation is uncertain and the local currency is volatile.
“We were bullish about inorganic growth till three months ago. However, there are three uncertainties that have come up. One what is going to happen to the euro. Second, what will happen to the currency (rupee) and number three what will happen to the total spend across the globe on IT,” said Mr Vineet Nayar, Vice Chairman and CEO, HCL Tech.
He added that the company is not looking at acquisition for their present business. “We would look at acquisition for future business...With this kind of euro and currency (rupee) fluctuation, we can get our acquisition totally wrong. So, we are pausing our acquisition,” he said.
The Indian rupee has depreciated by 15 per cent against the US dollar since the end of July 2011.
“We are now waiting for the euro crisis and currency fluctuation to settle a bit for us to have a little longer term view of what’s going to happen. And then take a decision on what would make sense as acquisition,” he added.
The company today announced 43.3 per cent growth in the second quarter profit at Rs 572.7 crore. Its shares closed Rs 425, up nearly 5 per cent on BSE.